4 GENERAL INFORMATION General Information One of the earliest settlement areas in human history, Hatay is a province of fellow ship and tolerance, where different cultures and beliefs have existed from the past to the present and which hosted many civilizations. Earliest findings related to humans in the region date back to s B.C. Hatay remained within the boundaries of Syria with the agreement signed between Turkey and France in 1921, later and in 1938 State of Hatay was founded and in 23 July 1939 the state joined Turkey. Hatay is located in Southern Turkey, on the eastern shores of Gulf of Iskenderun. It is surrounded by the Mediterranean in the west, Syria in the south and east, Adana in the northwest, Osmaniye in the north and Gaziantep in the northeast. Hatay Hatay s Rank in Turkey Turkey Area 5,831 km km 2 Population (2013) 1,503, ,667,864 Population Density (2012) 258 people / km people/km 2 Population Increase Rate (%) Source: TUİK Regional Statistics Database,

6 SOCIAL INDICATORS Education Mustafa Kemal University plays a significant role in the provision of human resources, needed by the industry and the province, in terms of education. Mustafa Kemal University has 15 Faculties, 3 Institutes, 6 Academies, 1 Conservatory, 18 Vocational Academies and 17 Research and Application Centers. In terms of human resources, numbers of students in various education levels are as follows: Number of Students in the Province of Hatay Pre-School 35,463 Primary Education 130,769 Secondary Education (General) 52,933 Secondary Education (Vocational and Technical) 45,942 Associate, Bachelor, Master s, Doctor s Degrees 32,554 Total 297,661 Source: TÜİK 2013 Health As it is the case in the education sector, there are significant developments in the health sector in Hatay as well. Numbers of hospitals and beds, as of 2012 are as follows: 6 Number of Hospitals (Public) Number of Hospital (Private) Number of Hospital Beds Number of Persons Per Hospital Bed Hatay , Source: TUİK, 2012

7 SOCIAL INDICATORS Province of Hatay, whose total number of private and public hospitals is 22, ranks 18th in Turkey in terms of number of hospitals. However, hospital investments are quite insufficient, when compared to its population. While there are 265 hospital beds per one hundred thousand persons on average in Turkey, this number is 181 in Hatay. Hatay ranks 70th in the mentioned indicator. There are 937 specialists, 721 general practitioners and 359 dentists in terms of health personnel in the province. There are 1,583 persons per specialist. Hatay ranks 46th in the mentioned indicator in Turkey. As current indicators demonstrate, Hatay seems to be a potential market for persons, who want to make an investment in the health sector, especially as a hospital, in terms of population and demand in the sector. Agriculture Hatay s agricultural areas, soil structure, climate and other natural conditions allow product variety, early harvest and growing second crops. It is possible to cultivate four seasons of the year in Hatay. Especially fruits, vegetables and olive grove areas are well above average in Turkey. Cultivated areas constitute 273,115 hectares (51%) of total 540,300 hectares of our province s area. 146,441 Hectares (54%) of cultivated areas are economically irrigable and approximately 20% (28,341 hectares) of this area is irrigated. When Reyhanlı, Orta Ceyhan Menzelet, Buyuk Karacay and Dostluk Dams, which are currently under construction, are finished, 105,950 hectares of area will be open for operation and irrigable area will reach 134,265 hectares (91,6%). 7

9 AGRICULTURE Hatay ranked 1st in fresh fruits and vegetables export, by exporting 478 million $ s worth production, which was 20% of Turkey s 2.35 million $ export (TIM, 2012). The fact that packaging sector is developed in the province had a large role in Hatay s success in the said sector. The success of the province in the sector is largely related to the packaging sector which is also highly developed. Ecological conditions of Hatay offer opportunities for early fruit growing. There are suitable areas for organic agriculture. Heating costs are low for greenhouse cultivation. There are corporate businesses in which medicinal and aromatic plants are processed, and there are rich endemic plant species in the province. There are educational institutions, which allow agricultural clustering and livestock at bachelor s and associate s degree level in the province and the counties. 9

10 AGRICULTURE Animal Production From 2012 to 2013 the number of cattle has risen from 140,001 to 142,473. Hatay Province stands out especially with the existence of poultry and production related to poultry; 58 percent of chicken population, all of white meat production and 47 per cent of egg production in the region are in Hatay. Apiculture activities and honey production in TR63 region have a significant part nationwide in Turkey; Hatay has 44 per cent of bee hives and 48 per cent of honey production in the region. AGRICULTURAL PRODUCTION VALUE IN HATAY PROVINCE (1000 TL) İl / Bölge Hatay 2187,625 2,397,512 2,273,855 2,567,766 2,746,912 Kahramanmaraş 1,148,198 1,447,251 1,494,754 1,486,980 1,512,564 Osmaniye 587, , ,542 1,109,459 1,003,235 TR63 3,922,904 4,589,322 4,455,152 5,164,204 5,262,710 Türkiye 79,708,948 89,827,096 94,878, ,166, ,551,055 Source: TUIK 10 Hatay provides the %52 of agricultural production in TR63 Region and %2.1 of Turkey with 2.75 billion TL total production. Agricultural and Rural Development Strategic Plan was prepared by the economic support of our agency in order to exploit the maximum level of agricultural potential of our province in 2011.

11 AGRICULTURE Province Agricultural and Rural Development Strategic Plan of Hatay The following are targeted within the scope of the plan: Development of qualified human resources in the agricultural sector Especially for branding and export-focused planning of the province s agriculture, Province of Hatay Agricultural and Rural Development Strategic Plan was prepared with the participation of all stakeholder, taking into account national and international agricultural policies. Thanks to the plan, agricultural product potential will be evaluated better and agricultural and agro-industrial investments in the region will be shaped to provide the highest added value. Increasing the amount of exportable products in the olive, olive oil, citrus fruits and cotton sectors and branding Province to become an important production center in the region, in respect of horticulture, field crops and medicinal and aromatic plants Development of stockbreeding and aquaculture in the province, Development of organic and Globalgap certified agriculture throughout the province Increasing the amount of irrigated areas and protecting environment and bio-diversity for sustainable agriculture, Development of agricultural industry, strengthening of agricultural marketing and activating farmers organizations, Improving infrastructure in rural areas and increasing the quality of life. Province of Hatay Agricultural and Rural Development Strategic Plan envisages important measures for the development of agriculture and stockbreeding. When the objectives and activities of the plan are accomplished, Province of Hatay is expected to become the Agricultural Trade Base of the Middle East. 11

12 INDUSTRY Industry Industry of the province of Hatay made progresses in the agricultural and agroindustrial sectors until the 1970s. Such products as cotton gin, flour, semolina, cottonseed oil, legumes sorting and olive oil are prominent in agro-industries. Especially; in order to process cotton, the most important agricultural product of Amik Plain, many cotton ginning and pressing factories have been established. After ISDEMIR (Iskenderun Iron and Steel Plant) gradually started production in 1975, iron and steel industry began to gain importance in the region and small and medium-sized industrial enterprises were established in the vicinity of Iskenderun and Payas for the utilization of iron-steel products. Iron and steel sector has been a driving force in the manufacturing industry, both for employment and the value it adds. Manufacturing industry has developed especially in machine, filter, agriculture equipment, shoe-leather processing and furniture production. Province of Hatay has become an important center for the iron and steel sector after the completion of ISDEMIR and with the introduction of privately owned steel and rolling mills. Furthermore; pipes, filters, wire nails and metal alloy facilities being established in the Organized Industrial Zones of Iskenderun, Payas and Antakya, are significant investments in terms diversification of production. Wheat, cotton, orange, mandarin, olive, onion, parsley and tomatoes are the most important tradable-agricultural products in Hatay. Investments in processing and packaging of these products prior to offering them to the market are of great importance in terms of evaluation of our agricultural products. When investment issues of Hatay are examined, it can be observed that investments are mostly in the cotton ginning and pressing, food, cotton (cottonseed) and olive oil facilities, iron and steel and machine industry fields throughout the province. Majority of existing industrial facilities are located in Antakya, Iskenderun and Dörtyol counties. 12 There were 882 industrial plants with industrial registry certificates in our province, as of Food companies constitute approximately 30% (266) of these firms. Food companies are followed by 138 metal goods companies and 134 chemical companies.

13 INDUSTRY Sector Number Of Companies Number Of Personnel Food 266 2,904 Metal Goods 138 4,536 Chemistry - Petroleum, Coal, Rubber and Plastics 134 2,057 Woven Garment and Leather Industry 110 2,798 Forest Products and Furniture Industry Mining, Stone and Earth-based Industries 88 2,183 Main Metal Industry 45 11,887 Paper, Paper Products and Printing Industry TOTAL: ,337 Source: Hatay Provincial Directorate of Ministry of Science, Industry and Technology, 2013 Considering the number of companies, main metal industry, which has the lowest number of companies in the province after paper, paper products and printing industry, makes a significant contribution to the economy and employment of the province. 11,887 (43.5%) of the 27,337 people, who were employed in the industry of our province, work in the main metal industry. 13

15 INDUSTRY It can be seen that a total of 222 investments, 122 of which are in the manufacturing sector, 73 in the service sector, 11 in the energy sector, 8 in the mining sector, 4 in the logistics sector, 3 in the health sector and 1 in the agriculture sector, obtained investment incentive certificates between 2009 and Total fixed investment amount of these documents is over 4,5 billion $ and thanks to these investments, additional people were employed. Sub-sectors of Hatay s Industry When we examine the Industry of Hatay in terms of sub-sectors; we can see that the iron and steel, filters, olive and olive oil, cotton gin, furniture and shoes production stand out. Iron and Steel Production Fresh Fruits and Vegetables Packaging Filter Production Furniture Production Shoe Production 15 Olive Cultivation and Olive Oil Production Cotton growing and Cotton gin and Press Plants

16 INDUSTRY Iron and Steel Production The first investment of iron and steel sector in our province, ISDEMIR facilities, was realized in 1967 within the framework of Technical and Economic Cooperation Agreement with the Soviet Union. The foundation of the facility with 1.1 million tons/year liquid steel capacity was laid on October 3, 1970 and 1975 set into operation gradually. With the establishment of ISDEMIR in the 1970s, economy of the region gained speed and new investment and employment areas began to emerge in the region. The pioneer of Iskenderun iron-steel alignment, ISDEMIR has realized 40 new projects and has begun to produce integrated flat steel in the last few years. In 2012, 7,1 million tons of ingot and 4,6 million tons of slab steel were produced in the region, a total of 11,7 million tons of steel. 16 Produced and imported from abroad, ingots are processed in rolling mills and transformed into sheet iron, moulding bars, angle irons, construction iron, nails and wires in our province. In addition, almost every kind of pipe with different areas of use is produced in facilities in our province

17 INDUSTRY Filter Production Hatay Province provides 63% of the filter production in our country by itself. In line with the developments in automotive and subsidiary industry sectors in our country, the first Turkish filter manufacturing plant started production in our Iskenderun county in After this first investment in our province, 14 production facilities in different sizes have been put into service in the same sector and filter production have become a driving force in the industry of our province. Air, oil and fuel filters; for heavy equipment and industrial purposes, air, fuel, oil and hydraulic filters; and air/oil separators are produced for all kinds of tractors and automobiles in these plants. 1,843 employees are employed at the existing filter plants. Total theoretical capacities of the plants are 47,100,000; actual production in 2009 was 22,418,674; and the sector s exports in 2009 was 20,224,035 $. During this period our province has covered great distance in filter sector. Constant technological renewal investments in the filter sector shows that our province has gained advantage over its competitors abroad. Due to the increase in investments and productions of flat products in iron and steel industry in the recent years, sheet metals, which the filter sector use as the main raw materials of the sector, will be provided from our country and the sector; in addition to avoiding great transportation costs, will provide a competitive advantage in the filter sector. 17

18 INDUSTRY Olive Cultivation and Production of Olive Oil Agriculture sector has a significant share in the economy of our province. 276,240 hectares of the total area of 540,300 hectares of the province are cultivated areas and 18% of this is olive grove fields. Our province realized 9.5% of Turkey s olive production with production of 158,419 tons of olives in (TUIK, 2013) 55 Olive Pressing Facilities with Industrial Registry Certificates, given by Hatay Provincial Directorate of the Ministry of Science, Industry and Technology operate and 40,862 tons of olive oil is extracted in these facilities. According to 2013 data of Turkish Exporters Assembly (TIM), total value of olive and olive oil exports of our province is 37.5 million $. With the increase in table olive cultivation areas in recent years, it can be observed that production of olives for pickling has begun in small numbers. Due to the supports for olive tree planting and the incentives given for olive oil, olive cultivation areas have increased considerably in the last few years. It is estimated that the production of olive and olive oil will increase by 50% in the next 10 years. 18 Thanks to the grants, provided within the framework of the project of supporting rural development by the Ministry of Food, Agriculture and Livestock in the last few years, fully-automatic system olive pressing facilities in accordance with the new technology have been established. Olive oil produced in our province has sought-after characteristics in terms of flavour and aroma both in domestic and foreign markets. Development of this sector also leads to the development of soap industry.

19 INDUSTRY Cotton Planting, Gin and Pressing Facilities Cotton planting was carried out in 406,600 acres of land and 210,248 tons of cotton was produced in our province in (TUIK, 2012). Cotton, produced in our province has the required specifications in thread, textile and fabric industries in terms of its fibre length, fibre and the other features. There are 66 Industrial Registry certified Cotton Gin and Pressing Facilities established in our province for the separation and pressing of the produced cotton from their seeds. There are also 7 spinning facilities for the processing and spinning cotton and 12 cottonseed oil extraction facilities for the extraction of cottonseed oil. Almost all of the cotton, produced, is processed in the Cotton Gin and Pressing Facilities in our province and pressed cotton is offered both for the domestic thread market and for export. In addition, there is a Cottonseed Facility for the production of the hybrid seeds of cotton to be planted. There are also large-scale facilities, producing towel, underwear, cleaning cloth from the cotton produced. 19

20 INDUSTRY Furniture Sector There are about 1500 companies in the woodworking sector in Antakya. These companies perform work, mostly requiring expertise and handicraft. Hatay is the leader in the production of small household furniture and accessories in Turkey. Mostly in economic grade, all types of suites for living and guestrooms are produced in our province. In addition to this, sofa beds which can be used as both sofas and beds, furniture for dining rooms and bedrooms, classic furniture and hotel rooms are produced and sold domestically and abroad. Number of factories, engaged in the production of wooden doors and windows is increasing every day in the province. 20

21 INDUSTRY Shoe-Making Sector 40% of men s shoes, sold in Turkey is provided from Hatay. All stages of shoes, from raw hide to the final shape they are worn, are carried out in Hatay. For the development of Shoe-Making Sector in our province, a Small Industrial Area for Shoe-Making will be established on 199 acres of land. In the site included in the National Investment Program, Shoe-making training, Design Centre and Shared Workshop Project which has been prepared by DOĞAKA; and presented to Regional Competitiveness Operational Program of the European Union, will be realized. Through the project with a budget of EUR 5.5 million; Establishment of Shoe-Making Training, Consulting and Design Center and Shared Workshop in the Small Industrial Area for Shoe-Making, which has an indoor area of 1500 m², equipped with high-tech machines and offering common use, training and consulting opportunities, Utilization of the established workshop by 100 companies in one year, Training of 200 sector executives and employees in one year in the established center, Providing consultancy services for 100 companies in one year in the established center, At least 20 businesses obtaining quality certificates through improvement of their quality standards within 2 years, Ensuring the participation of at least 20 businesses to domestic and external fairs, 21 At least 10 businesses exporting their goods by creating their unique brands in 2 years, are being planned.

22 INDUSTRY Hatay Organized Industrial Zones There are 4 industrial zones in total, two of which are situated in Iskenderun and the others in Antakya and Payas. In addition, work continues for new OIZs in Erzin, Kırıkhan, Altınözü and Iskenderun. Organized Industrial Zones in the province of Hatay (2012) Name of OIZ Size of OIZ (ha) Number of Parcels Occupancy Rate 100% Number of Employees in OIZs Antakya OIZ İskenderun OIZ Hatay Payas OIZ İskenderun II. OIZ Source: Hatay Provincial Directorate of Ministry of Science, Industry and Technology, 2013 Antakya OIZ: 22 Organized Industrial Zone of Antakya was established in Actual employment is 1,221 people at the companies, operating in the region. The OIZ is close to international transportation arteries and the market, being at a distance of km from public and private ports of Iskenderun, 13 km from the airport and 45 km from the Cilvegozu Border check-point. Being close to Mustafa Kemal University, public institutions and scientific organizations, having a continuous water substructure, cheap unit price of water and having the potential of being autoproducer for wind energy boosts the importance of the region. For the expansion of Antakya s OIZ, an application was made to the Ministry of Science, Industry and Technology. Site Selection Committee examined on site on February 23, Map and observational geological survey studies are in progress.

23 INDUSTRY İskenderun OIZ: It is situated at the 12th kilometer of Iskenderun-Adana (E-5) Highway. It is located at a distance of 50 km from Hatay Airport, 120 km from Adana Airport, 12 km from İskenderun Port, 3km from railroad, 5 km from highway, 13 km from İskenderun Customs and center of Iskenderun and 40 km from Yumurtalık Free Trade Zone. Considering the sectoral distribution of the active manufacturing facilities; their percentages are observed as follows: iron and steel plants %50, machine manufacturing plants 20%, pipe manufacturing facilities 20%, filter manufacturing facilities 10%. Payas OIZ: It is located within the boundaries of Payas county. Payas Organized Industrial Zone was built on 53 hectares of land and has a total of 42 industrial plots. 98% of industrial enterprises in Payas OIZ manufacture iron and iron products. Surrounded by TEM highway, E 5 highway, Payas Organized Industrial Zone is at a distance of 1 km from ISDEMIR (İskenderun Iron and Steel Plants), 3 km from railroads and about 2 km. from the ports. İskenderun II. OIZ: Construction plan of the zone, which is built on 750 hectares of land, has been made and plots have been allocated to investors. 23

24 INDUSTRY Organized Industrial Zones in Progress in the Province of Hatay (2012) Erzin Organized Industrial Zone: The zone which las a legal identity, is built on 150 hectares of land, and the acquisition of non-public areas from private owners continues. Planning and infrastructure projects will be executed and plots will be allocated to investors after acquisitions. Kırıkhan OIZ: An application has been made to the Ministry of Science, Industry and Technology for the OIZ, with an area of 1,430 acres for which preliminary examination for site selection has been performed and base map work has been realized by the Kırıkhan Chamber of Commerce and Industry, founder of OIZ. A decision will be made by the ministry on whether to continue site selection works after examination or not. Altınözü OIZ for Olive Cultivation Expertise: 24 For the OIZ with a surface area of 1,210 acres, an application was made to the Ministry of Science, Industry and Technology on December 27, 2012.

25 INDUSTRY Enek OIZ for Agriculture Based Expertise: For the development of animal production models of Hatay Province, livestock breeding sector, which are efficient, high quality, highly competitive and has high added value, the project in question has been prepared and presented to the Ministry of Food, Agriculture and Livestock. Work for site selection continues. Iskenderun OIZ for Logistics Expertise: 5 Sites have been designated for the establishment of OIZ for Logistics Expertise within the framework of Iskenderun Logistics and after one of them has been clarified, it is intended to make an application to the Ministry of Science, Industry and Technology. Small Industrial Sites in Hatay There are 5 small industrial sites in the province of Hatay. There is a total of 2,726 businesses and 9,331 employees in these sites, which are active in different counties. Small Industrial Sites in the Province of Hatay (2012) 25 Hatay (TR631) Name Year it began Operation Number of Total Businesses Occupancy Rate % Present state of employment Antakya KSS , ,000 İskenderun KSS ,000 Dörtyol KSS Payas KSS Kırıkhan KSS Source: Hatay Provincial Directorate of Ministry of Science, Industry and Technology, 2013

26 INDUSTRY Small Industrial Sites in Progress in the Province of Hatay (2012) Antakya Shoe-Making SIS: SIS with a surface land of 199 acres was also included in the 2014 investment program of Ministry of Science, Industry and Technology with 22,620,000TL project cost. Construction, Project, EIA, geological survey, dimensional drawing and other projects are carried out by SIS administration and Antakya municipality. The Project is planned to be completed in Reyhanlı SIS: For the SIS with a surface land of 210 acres of land, an application for site selection was made on December 17, 2012 to the Ministry of Science, Industry and Technology. 600 thousand TL was allocated from the Ministry s budget in 2013 for the project which is on investment program and has an estimated cost of 16 million TL. Antakya SIS for Furniture Dealers Expertise: The site selection application to the Ministry of Science, Industry and Technology of SIS with a surface land of 465 acres of land has been approved. Construction, Project, EIA, geological survey, dimensional drawing and other projects are carried out by SIS administration. 600 thousand TL was allocated from the Ministry s budget in 2013 for the project which is on investment program and has an estimated cost of TL. Erzin SIS: 26 Site selection application to the Ministry of Science, Industry and Technology of SIS with a surface land of 61 acres has been approved, on condition of fulfilment of some deficiencies. Construction plan works are being carried out by the cooperative.

27 CULTURE AND TOURISM Culture and Tourism Hatay is a city of peace, brotherhood and tolerance, which has hosted many civilizations with its rich cultural heritage. Its location and geography, the fact that it is one of the first settlements in the world, its climate and rich tourism wealth supports its tourism potential. The number of passengers entering through the border check-points of Hatay in 2012 was 575,070 people. A total of 245,000 people came to the facilities with operation licenses in thousand people visited the museums and historical sites of Hatay in There are 26 lodging facilities with tourism operation licenses and 22 with tourism investment licenses in the province. (Ministry of Culture and Tourism, 2012 data). There are two 5-star hotel in Hatay, where construction of another two 5-star hotels continue. Did You Know? The province, where three divine religions and different sects live together, has the largest mosaic museum in the world. The first church in the world (Church of St. Peter) and the first mosque of Anatolia (Habib-i Neccar Mosque) are located in Antakya, the center of the province. Hatay is the first settlement of Jews in Anatolia. The first street to be illuminated in history, Kurtuluş Street, is located in Antakya. The only Armenian Village of Turkey, Vakıflı Village, is located in Samandağ county 27 It is among the 15 provinces under the Brand City Project of Ministry of Culture and Tourism.

28 CULTURE AND TOURISM Did You Know? Hatay, where many civilizations lived and whose cuisine culture affected by this diversity, is one of the special gastronomy areas of Turkey. There are many unique elements of Hatay cuisine. This cuisine, having about 460 food varieties, has over 200 distinctive food varieties of its own. The fact that the people in Hatay can speak Arabic makes the province attractive for Middle Eastern tourists. Number of total beds of the facilities with tourism operation license is 3,869. With the completion of businesses whose investments are still in progress, the number of beds with tourism operation license will rise to 7,000. Such traditional handcrafts as sericulture and silk weaving, wickerwork, mosaic, reed production, sculpture, glasswork and numismatics are performed in Hatay. 28

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